Storage King's Development Opportunity Keeps Bull Onside

Dow Jones
08/17

2307 GMT - Shaw & Partners's verdict on Storage King's annual result and FY27 distribution guidance: short-term pain for long-term gain. Storage King signaled a payout of 4.5 Australian cents/unit in FY27. That was below consensus expectations of 6.0 cents/unit. "The implication is that FY27 funds from operations should be short of original market expectations," analyst Larry Gandler says. Still, Shaw retains a buy call on Storage King, citing its development opportunity. The company has nearly 230,000 square meters of development and lease-up capacity, compared with a mature portfolio of 600,000 sqm. These projects can boost revenue by nearly A$80 million by 2032. "We expect investors to begin seeing this growth materially reflected in earnings from FY29," Shaw says.

 

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